N-30D 1 sticlassicmmretail.txt STI CLASSIC RETAIL MM NOVEMBER 2002 SEMI-ANNUAL ................................................................................ FINANCIAL REPORT ................................................................................ STI CLASSIC FUNDS ................................................................................ A Family of Mutual Funds ................................................................................ PRIME QUALITY MONEY MARKET FUND TAX-EXEMPT MONEY MARKET FUND U.S. GOVERNMENT SECURITIES MONEY MARKET FUND U.S. TREASURY MONEY MARKET FUND VIRGINIA TAX-FREE MONEY MARKET FUND NOVEMBER 30, 2002 [STI Logo Omitted] Dear Valued STI Classic Funds' Shareholder: The equity markets closed lower and the bond markets finished higher in the six months ended November 30, 2002, but stocks appeared to begin a cyclical bottoming process that may bode well for improved performance in 2003. Continued concerns about strength of the economic and corporate profits recovery left the S&P 500 Composite Index down 11.5% on a total return basis during this period, while the fixed-income market performance as measured by the Lehman Aggregate Bond Index rose just under 5%. As you may recall from previous letters, we have been cautiously positive on the equity markets since shortly after the tragic events of September 11, 2001. The favorable confluence of aggressive interest rate cuts by the Federal Reserve, tax reductions and spending increases by the Federal Government, more realistic corporate earnings expectations, and increasingly negative investor psychology helped provide a more attractive environment for equities. You may also recall however, that we have been much more price-sensitive and timing-sensitive in our equity selection. This was a result of our expectation that the current economic recovery would be more muted by historical standards, and that the markets would have a tendency to "chase" good news beyond its actual value. We also adopted a more cautious stance toward fixed-income investments, emphasizing the potential benefits from a gradual reduction in credit risk rather than betting that long term yields will fall much below their 40-year lows. During the past six months, the economy continued its uneven but positive recovery at a pace that resembled the "stealth recovery" of the early 1990s. Job and production growth has been frustratingly slow, causing investors to worry about a "double-dip" recession. The S&P 500 tended to reflect the on-again-off-again shift in sentiment and expectations, bottoming first in July and again in October. While none of the ten major sectors in the Index posted gains over the past six months, both the battered technology and telecommunications sectors did garner some renewed investor interest amid signs of an evolving capital spending recovery. Large-cap stocks also regained favor during the period, though they lagged small-cap stocks over the past twelve months. Neither the growth nor the value styles showed a significant performance advantage, however. The fixed-income markets also experienced shifting performance during the period. While the highest quality, longer-term Treasury securities showed the best returns over the six months, corporate and mortgage-backed securities staged an impressive recovery in October and November. During this time we continued to emphasize the benefits of and need for a well-diversified portfolio as the most effective means of navigating these turbulent markets. We are increasingly optimistic in our outlook for the economy and the stock markets in the closing days of 2002, but we also realize there are significant potential constraints on both. While the economy is currently working its way through a "soft patch," it appears that most corporations have eliminated excess inventories, have downsized considerably, and have returned to profitability. Moreover, the Fed reduced short-term rates again in November and the Republican control of both houses of Congress following the mid-term elections suggests a higher probability of further tax cuts and other fiscal stimulus. While these factors will help provide a sturdy base for recovery, the pace of growth is likely to be somewhat constrained by an already strong pace of consumer spending, sluggish job growth and the threat from global instability. This may mean a continuation of the volatility that has characterized market performance in recent years, but we believe the economy and the stock markets can develop a more positive trend. We believe our emphasis on fundamental research on each company security we purchase will continue to provide the kind of strong relative performance that our clients have come to know and expect from the STI Classic Family of Mutual Funds. We thank you for your loyalty and trust during these challenging times, and we will continue to earn and validate that trust in 2003. Sincerely, /s/Douglas S. Phillips Douglas S. Phillips Chief Investment Officer 1 This page left intentionally blank STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 (UNAUDITED) PRIME QUALITY MONEY MARKET FUND ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ COMMERCIAL PAPER (35.0%) AGRICULTURE (0.9%) Cargill 1.700%, 01/17/03 $ 25,000 $ 24,944 1.700%, 01/21/03 25,000 24,940 ---------- 49,884 ---------- ASSET BACKED (9.1%) Amstel Funding 1.370%, 12/09/02 9,055 9,052 1.370%, 12/16/02 2,689 2,688 1.370%, 12/17/02 5,000 4,997 1.750%, 01/21/03 100,000 99,751 1.390%, 02/19/03 25,000 24,923 Atlantis One Funding 1.340%, 12/05/02 104,482 104,466 Dorada Finance 1.350%, 01/08/03 23,000 22,967 1.360%, 01/28/03 17,000 16,963 1.360%, 02/04/03 5,150 5,137 Edison Asset Securitization 1.790%, 12/04/02 5,328 5,327 Sigma Finance 1.700%, 12/02/02 25,000 24,999 2.080%, 12/16/02 4,000 3,997 Starfish Global Funding 1.350%, 12/18/02 63,586 63,545 1.390%, 01/06/03 16,287 16,264 1.320%, 01/09/03 40,000 39,943 1.400%, 01/10/03 20,486 20,454 1.380%, 01/21/03 53,072 52,968 ---------- 518,441 ---------- AUTO FINANCE (1.0%) American Honda Finance 1.330%, 01/13/03 8,785 8,771 Toyota Motor Credit 1.350%, 12/05/02 1,500 1,500 Volkswagen America 1.330%, 12/06/02 50,000 49,991 ---------- 60,262 ---------- ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ BANKS (4.5%) Abbey National North America 1.320%, 12/10/02 $ 1,700 $ 1,700 American Express Centurion Bank 1.800%, 04/28/03 2,000 1,985 Den Norske 1.350%, 01/08/03 89,250 89,123 1.350%, 01/13/03 100,000 99,839 Spintab AB 1.580%, 12/02/02 5,000 5,000 1.350%, 12/11/02 1,500 1,499 1.350%, 12/13/02 1,405 1,404 1.770%, 01/08/03 25,000 24,953 Union Bank of Switzerland 1.300%, 12/11/02 30,250 30,239 ---------- 255,742 ---------- DIVERSIFIED OPERATIONS (1.5%) Fortune Brands 1.300%, 12/12/02 7,000 6,997 Rio Tinto 1.600%, 12/10/02 11,140 11,136 1.550%, 12/18/02 2,395 2,393 1.350%, 01/14/03 50,637 50,553 1.400%, 01/15/03 1,794 1,791 1.350%, 01/16/03 14,167 14,143 ---------- 87,013 ---------- DRUGS (2.7%) Aventis 1.700%, 12/10/02 40,700 40,683 1.320%, 12/16/02 8,000 7,995 Bayer 1.350%, 01/16/03 7,000 6,988 1.350%, 01/17/03 50,000 49,912 3 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 PRIME QUALITY MONEY MARKET FUND--CONTINUED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ DRUGS -- CONTINUED Merck 1.320%, 12/09/02 $ 50,000 $ 49,985 ---------- 155,563 ---------- ENERGY (0.5%) Schlumberger 1.300%, 12/04/02 27,000 26,997 ---------- FINANCIAL SERVICES (8.1%) Allianz Financial 1.350%, 12/13/02 92,000 91,959 Diageo Capital 2.700%, 03/11/03 50,000 49,626 2.420%, 03/12/03 50,000 49,661 Exxon Asset Management 1.320%, 12/16/02 6,425 6,421 Fortis Funding 1.350%, 12/02/02 57,208 57,206 1.320%, 12/16/02 98,000 97,946 General Electric Capital 1.600%, 12/04/02 1,005 1,005 International Lease Finance 1.350%, 12/06/02 25,000 24,995 1.280%, 12/20/02 1,800 1,799 1.350%, 01/23/03 33,000 32,934 Prudential Funding 1.620%, 01/06/03 1,500 1,498 Swiss Re Financial 1.350%, 01/28/03 50,000 49,891 1.390%, 02/06/03 1,200 1,197 ---------- 466,138 ---------- ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ HOUSEHOLD PRODUCTS (0.0%) Sherwin-Williams 1.700%, 12/16/02 $ 1,400 $ 1,399 ---------- INSURANCE (1.2%) Jefferson-Pilot 1.390%, 03/27/03 44,000 43,803 John Hancock 1.340%, 12/06/02 20,000 19,996 Marsh & McLennan 1.300%, 12/19/02 1,675 1,674 1.300%, 12/20/02 3,100 3,098 ---------- 68,571 ---------- INVESTMENT BANKER/BROKER DEALER (0.1%) UBS Finance 1.300%, 12/19/02 4,399 4,396 ---------- TELEPHONE & TELECOMMUNICATIONS (1.5%) SBC International 1.310%, 12/05/02 33,235 33,230 Vodafone 1.780%, 12/02/02 50,000 49,998 ---------- 83,228 ---------- UTILITIES (3.9%) Florida Power & Light 1.350%, 12/03/02 28,000 27,998 1.350%, 12/10/02 12,000 11,996 1.340%, 12/16/02 30,000 29,983 1.390%, 01/16/03 50,000 49,911 1.400%, 01/17/03 20,000 19,963 1.390%, 01/21/03 28,000 27,945 1.390%, 01/22/03 27,000 26,946 4 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ UTILITIES -- CONTINUED South Carolina Electric & Gas 1.330%, 12/18/02 $ 7,000 $ 6,996 1.370%, 12/30/02 3,200 3,197 1.380%, 01/13/03 15,500 15,474 South Carolina Fuel 1.370%, 12/12/02 1,780 1,779 ---------- 222,188 ---------- Total Commercial Paper (Cost $1,999,822) 1,999,822 ---------- CORPORATE OBLIGATIONS (42.3%) AGRICULTURE (0.2%) Cargill, MTN (A)(C) 1.975%, 01/13/03 10,000 10,002 ---------- ASSET BACKED SECURITIES (8.5%) Beta Finance, MTN 1.418%, 04/25/03 75,000 75,000 Beta Finance, MTN (A) 2.370%, 01/10/03 5,000 5,000 Dorada Finance, MTN (A)(C) 1.493%, 01/27/03 100,000 99,999 MMCA Auto Lease Trust, Ser 2002-A 1.827%, 04/15/03 71,444 71,444 New South Motor Vehicle Trust, Ser 2002-A, Cl A1 1.440%, 06/15/03 35,000 35,000 Regions Auto Receivables Trust, Ser 2002-1, Cl A1 1.400%, 12/15/03 73,500 73,500 Sigma Finance, MTN (A) (C) 1.433%, 04/28/03 75,000 74,996 1.423%, 04/28/03 50,000 49,996 ---------- 484,935 ---------- ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ AUTO FINANCE (2.2%) Toyota Motor Credit, MTN (C) 1.508%, 12/23/02 $125,000 $ 125,000 ---------- BANKS (8.6%) American Express Centurion Bank (C) 1.359%, 12/12/02 50,000 50,000 1.380%, 10/10/03 75,000 75,000 Australia & New Zealand Banking Group, MTN (C) 1.440%, 08/18/03 50,000 50,036 Bank of America, Ser E, MTN (A)(C) 1.600%, 05/14/03 10,000 10,008 Den Norske, Ser E, MTN (C) 1.903%, 04/17/03 2,500 2,501 First Tennessee Bank (C) 1.408%, 04/17/03 50,000 50,000 First Union National Bank (C) 1.621%, 12/18/02 25,000 25,003 1.981%, 06/27/03 20,000 20,028 Marshall & Ilsley Bank (C) 1.428%, 08/21/03 10,000 10,001 Marshall & Ilsley Bank (D) (H) 6.150%, 12/03/07 101,000 101,009 National City (C) 1.470%, 05/12/03 40,000 40,023 Wells Fargo, MTN (C) 1.420%, 10/15/03 50,000 50,000 Wells Fargo, Ser G, MTN 5.750%, 02/01/03 5,543 5,572 ---------- 489,181 ---------- CONSUMER PRODUCTS (0.0%) Colgate-Palmolive, Ser E, MTN (C) (D) 1.120%, 08/22/42 3,040 2,973 ---------- 5 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 PRIME QUALITY MONEY MARKET FUND--CONTINUED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ DIVERSIFIED OPERATIONS (1.0%) Philip Morris Tobacco 7.250%, 01/15/03 $ 12,375 $ 12,442 8.250%, 10/15/03 22,729 23,863 6.800%, 12/01/03 18,000 18,798 ---------- 55,103 ---------- DRUGS (1.4%) Bayer (A) (C) 4.450%, 03/19/03 75,000 75,316 Merck, Ser D, MTN (C) (D) 0.970%, 08/22/42 2,350 2,296 ---------- 77,612 ---------- FINANCIAL SERVICES (10.2%) American Express Credit, Ser B, MTN 1.370%, 03/07/03 14,274 14,273 1.380%, 03/25/03 4,758 4,758 1.424%, 10/10/03 5,275 5,275 American General Finance 5.900%, 01/15/03 1,890 1,898 6.200%, 03/15/03 15,000 15,149 5.750%, 11/01/03 7,070 7,294 American General Finance, Ser E, MTN 6.250%, 12/18/02 4,250 4,257 Ameritech Capital Funding 5.875%, 02/19/03 14,440 14,531 Associates (C) (D) 1.896%, 06/15/04 75,000 75,000 CIT Group 7.375%, 03/15/03 61,400 61,992 5.625%, 10/15/03 38,194 38,963 7.500%, 11/14/03 52,715 54,344 CIT Group, MTN 5.920%, 01/15/03 8,375 8,400 5.910%, 11/10/03 1,350 1,374 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ FINANCIAL SERVICES -- CONTINUED CIT Group, MTN (C) 2.210%, 04/07/03 $ 20,750 $ 20,746 2.630%, 11/25/03 15,000 15,000 General Electric Capital 1.381%, 01/22/03 50,000 50,001 General Electric Capital (C) 1.409%, 11/07/03 69,000 69,000 General Electric Capital, MTN (C) 5.000%, 01/06/03 1,573 1,577 General Electric Capital, Ser A, MTN 7.000%, 02/03/03 2,255 2,272 Heller Financial 6.400%, 01/15/03 12,000 12,057 Heller Financial, Ser I, MTN (C) 2.090%, 04/28/03 1,000 1,002 Household Finance 6.875%, 03/01/03 4,000 4,038 Household Finance (C) 1.881%, 08/15/03 75,000 75,000 Household Finance, MTN 6.125%, 02/27/03 10,000 10,059 Prudential Funding, MTN (A) 5.970%, 03/17/03 4,375 4,409 Wells Fargo Financial 7.000%, 01/15/03 10,795 10,855 ---------- 583,524 ---------- INSURANCE (0.0%) ING Groep, MTN 7.125%, 03/01/03 2,010 2,030 ---------- INVESTMENT BANKERS/BROKER DEALERS (4.6%) Bear Stearns 6.125%, 02/01/03 5,000 5,030 6.200%, 03/30/03 2,400 2,436 Bear Stearns, Ser B, MTN 1.420%, 05/22/03 75,000 75,000 6 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ INVESTMENT BANKERS/BROKER DEALERS -- CONTINUED Bear Stearns, Ser B, MTN (C) 1.775%, 06/20/03 $ 25,000 $ 25,022 Credit Suisse First Boston, MTN 1.926%, 12/12/02 10,000 10,001 Goldman Sachs Group, MTN (C) 1.980%, 03/17/03 4,000 4,001 Merrill Lynch, MTN (C) 1.956%, 10/01/03 3,025 3,025 Merrill Lynch, Ser E, MTN 6.800%, 11/03/03 1,000 1,044 Morgan Stanley Dean Witter 7.125%, 01/15/03 4,300 4,324 1.370%, 01/21/03 25,000 25,000 Morgan Stanley Dean Witter, MTN (C) 2.007%, 03/13/03 5,490 5,493 Morgan Stanley Dean Witter, Ser 1, MTN (C) 1.481%, 10/16/03 75,000 75,000 Morgan Stanley Dean Witter, Ser 3, MTN (C) 1.910%, 05/05/03 25,000 25,002 Salomon Smith Barney Holdings 6.125%, 01/15/03 5,000 5,025 ---------- 265,403 ---------- PETROLEUM & FUEL PRODUCTS (0.2%) BP Amoco PLC, Ser A, MTN 6.600%, 12/04/02 3,000 3,001 ChevronTexaco 8.500%, 02/15/03 10,900 11,033 ---------- 14,034 ---------- ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ REGIONAL GOVERNMENT AGENCY (0.7%) Hydro-Quebec 7.375%, 02/01/03 $ 18,055 $ 18,201 Inter-American Development Bank 7.000%, 06/16/03 1,600 1,635 International Bank Reconstruction & Development, MTN 5.500%, 01/21/03 10,000 10,041 Province of Ontario 7.375%, 01/27/03 9,500 9,569 ---------- 39,446 ---------- RETAIL (0.3%) May Department Stores 9.875%, 12/01/02 8,698 8,698 Target 6.400%, 02/15/03 3,275 3,299 6.625%, 03/01/03 1,000 1,008 Wal-Mart 4.625%, 04/15/03 2,000 2,012 ---------- 15,017 ---------- TELEPHONE & TELECOMMUNICATIONS (4.0%) Bell Telephone Company of Pennsylvania 6.125%, 03/15/03 16,000 16,155 BellSouth Telecommunications 6.250%, 05/15/03 1,570 1,594 BellSouth Telecommunications (A) (C) 4.105%, 04/26/03 125,000 125,713 GTE South, Ser A 6.310%, 12/15/02 3,500 3,505 SBC Communications (A) 4.295%, 06/05/03 75,000 75,579 7 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 PRIME QUALITY MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ Telephone & Telecommunications -- continued Verizon Communications 9.100%, 06/01/03 $ 5,000 $ 5,139 ---------- 227,685 ---------- UTILITIES (0.4%) Alabama Power, Ser O (C) 1.906%, 03/03/03 15,000 15,002 Georgia Power, Ser F 5.750%, 01/31/03 3,225 3,245 Wisconsin Electric Power 6.625%, 12/01/02 7,110 7,110 --------- 25,357 ---------- Total Corporate Obligations (Cost $2,417,302) 2,417,302 ---------- CERTIFICATES OF DEPOSIT (7.1%) ABN Amro (C) 1.330%, 12/06/02 50,000 50,000 Canadian Imperial Bank 2.090%, 12/31/02 50,000 50,000 Commerzbank (C) 1.608%, 12/06/02 100,000 99,999 Dresdner Bank (C) 2.550%, 05/12/03 1,500 1,507 Marshall & Ilsley Bank 5.263%, 12/15/03 25,700 26,631 Societe Generale, NY 1.299%, 03/24/03 75,000 74,990 Westdeutsche Landesbank, NY 1.301%, 03/24/03 100,000 99,985 ---------- Total Certificates of Deposit (Cost $403,112) 403,112 ---------- ------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ U.S. GOVERNMENT AGENCY OBLIGATIONS (7.8%) FFCB 3.125%, 10/01/03 $ 17,350 $ 17,514 FHLB, Ser 4J03 1.750%, 09/03/03 12,075 12,059 FHLB, Ser 7U03 1.860%, 11/03/03 10,000 9,994 FHLB, Ser 9F03 1.900%, 11/12/03 6,975 6,967 FHLB, Ser 9J03 1.900%, 11/14/03 73,500 73,460 FHLMC (G) 1.686%, 01/15/03 4,000 3,991 FNMA 3.125%, 11/15/03 123,530 124,918 SLMA Discount Note (G) 2.280%, 01/27/03 200,000 199,278 ---------- Total U.S. Government Agency Obligations (Cost $448,181) 448,181 ---------- CASH EQUIVALENTS (8.1%) Dreyfus Cash Management Plus Fund 265,000,000 265,000 Federated Prime Value Money Market Fund 200,000,000 200,000 ---------- Total Cash Equivalents (Cost $465,000) 465,000 ---------- 8 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS (1.1%) Lehman Brothers 1.265% dated 11/29/02, matures 12/02/02, repurchase price $24,284,010 (collateralized by U.S. Government obligation: total market value $24,769,780) (B) $ 24,281 $ 24,281 Merrill Lynch 1.295% dated 11/29/02, matures 12/02/02, repurchase price $11,256,065 (collateralized by U.S. Government obligations: total market value $11,480,833) (B) 11,255 11,255 Paribas 1.335% dated 11/29/02, matures 12/02/02, repurchase price $20,314,875 (collateralized by U.S. Government obligation: total market value $20,720,506) (B) 20,313 20,313 UBS Warburg 1.315% dated 11/29/02, matures 12/02/02, repurchase price $6,734,626 (collateralized by U.S. Government obligations: total market value $6,873,787) (B) 6,734 6,734 ---------- Total Repurchase Agreements (Cost $62,583) 62,583 ---------- Total Investments (101.4%) (Cost $5,796,000) 5,796,000 ---------- ------------------------------------------------------------ VALUE (000) ------------------------------------------------------------ OTHER ASSETS AND LIABILITIES (-1.4%) Investment Advisory Fee Payable $ (2,621) Administration Fee Payable (331) Distribution Fee Payable - Investor Class (289) Distribution Fee Payable - Flex Class (11) Custodian Fee Payable (20) Other Assets and Liabilities (76,570) ---------- Total Other Assets and Liabilities, Net (79,842) ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 3,761,002,760 outstanding shares of beneficial interest 3,760,981 Portfolio Shares of Investor Class (unlimited authorization -- no par value) based on 1,938,150,085 outstanding shares of beneficial interest 1,938,173 Portfolio Shares of Flex Class (unlimited authorization -- no par value) based on 17,002,403 outstanding shares of beneficial interest 17,002 Distributions in excess of net investment income (819) Accumulated net realized gain on investments 821 ---------- Total Net Assets (100.0%) $5,716,158 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Class (1) $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 31. 9 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 TAX-EXEMPT MONEY MARKET FUND ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ MUNICIPAL BONDS (94.6%) ALABAMA (4.6%) Birmingham, Special Care Facilities, Carraway Methodist Health Project, Ser A, RB (C) (D) (E) 1.190%, 08/15/28 $ 11,300 $ 11,300 Birmingham, Special Care Facilities, Ser PT 510, RB (C) (D) 1.360%, 11/15/20 15,000 15,000 Cherokee, Industrial Development Board, BOC Group Project, RB (C) (D) (E) 1.300%, 04/01/08 3,500 3,500 Daphne-Villa Mercy, Special Care Facility Authority, Mercy Medical Project, RB (C) (D) (E) 1.190%, 12/01/27 18,500 18,500 Mobile, Industrial Development Board, Dock & Wharf Holnam Project, Ser A, RB (C) (D) (E) 1.100%, 06/01/32 4,900 4,900 --------- 53,200 --------- ARIZONA (0.4%) Salt River Project, Agricultural Improvement & Power District, Electric System, Ser SG-10, RB (C) (D) 1.220%, 01/01/30 4,770 4,770 --------- COLORADO (0.6%) Colorado State, Multi-Family Housing Finance Authority, St. Moritz Project, Ser H, RB, FNMA (C) (D) 1.150%, 10/15/16 5,715 5,715 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ COLORADO -- CONTINUED Lowry, Economic Redevelopment Authority, Ser B, RB (C) (D) (E) 1.200%, 12/01/20 $ 1,800 $ 1,800 ---------- 7,515 ---------- DELAWARE (0.2%) Delaware State, Educational Development Authority, RB (C) (D) (E) 1.625%, 10/01/19 1,875 1,875 ---------- DISTRICT OF COLUMBIA (1.3%) District of Columbia, George Washington University Project, Ser C, RB, MBIA (C) (D) 1.250%, 09/15/29 7,500 7,500 District of Columbia, Planned Parenthood, RB (C) (D) (E) 1.150%, 12/01/29 7,030 7,030 ---------- 14,530 ---------- FLORIDA (10.8%) Collier County, School Board Authority, RB (C) (D) 1.220%, 02/15/21 6,300 6,300 Dade County, Water & Sewer System, RB, FGIC (C) (D) 1.100%, 10/05/22 43,360 43,360 Florida State, Housing Finance Agency, Brentwood Club Apartments Project, Ser A-1, RB (C) (D) (E) 1.250%, 01/15/35 10,400 10,400 10 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ FLORIDA -- CONTINUED Florida State, Multi-Family Housing Finance Authority, Bainbridge Project, Ser M, RB, FNMA, AMT (C) (D) 1.170%, 12/01/25 $ 6,470 $ 6,470 Muniemae, RB (C) (D) 1.320%, 12/19/05 5,000 5,000 Orange County, Health Facilities Authority, Ser PA-95, RB (C) (D) 1.220%, 10/01/14 8,485 8,485 Orange County, Housing Finance Authority, Water View Club Apartments Project, Ser D, RB, FNMA, AMT (C) (D) 1.170%, 08/15/30 6,300 6,300 Palm Beach County, Norton Gallery Project, RB (C) (D) (E) 1.200%, 05/01/25 2,500 2,500 Tampa Bay, Regional Water Supply Authority, RB (C) (D) (E) 1.250%, 10/01/31 9,300 9,300 University of North Florida, Parking Systems Project, RB (C) (D) (E) 1.300%, 05/01/28 5,700 5,700 University of South Florida, COP (C) (D) (E) 1.110%, 01/01/29 10,790 10,790 University of South Florida, Research Foundation, University Technology Center Project, RB (C) (D) (E) 1.200%, 12/01/19 11,500 11,500 ---------- 126,105 ---------- ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ GEORGIA (5.5%) Atlanta, Airport Authority, Ser 313, RB, FGIC, AMT (C) (D) 1.310%, 01/01/18 $ 3,335 $ 3,335 Atlanta, Airport Authority, Ser SG 138, RB (C) (D) 1.240%, 01/01/26 6,600 6,600 Cobb County, Educational Facilities Development Authority, Kennesaw State University Project, RB, AMBAC (C) (D) 1.300%, 11/01/18 5,615 5,615 Fulton County, Development Authority, American National Red Cross Project, RB (C) (D) (E) 1.300%, 08/01/05 600 600 Fulton County, Development Authority, Metropolitan Atlanta YMCA Project, RB (C) (D) (E) 1.300%, 11/01/22 8,500 8,500 Georgia State, Eagle Trust, RB (C) (D) 1.250%, 07/01/15 7,025 7,025 Georgia State, GO (C) (D) 1.180%, 11/01/09 16,865 16,865 Houston County, Development Authority, Clean Control Project, RB, AMT (C) (D) (E) 1.300%, 06/01/20 3,150 3,150 Metropolitan Atlanta, Rapid Transportation Authority, Ser SG-57, RB, AMBAC (C) (D) 1.220%, 07/01/20 5,000 5,000 11 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ GEORGIA -- CONTINUED Mitchell County, Industrial Development Authority, City of Camille Project, RB (C) (D) (E) 1.350%, 03/01/15 $ 3,600 $ 3,600 Savannah, Economic Development Authority, Exempt Facilities- Construction Utilities Project, RB, AMT (C) (D) (E) 1.300%, 12/01/19 1,965 1,965 Savannah, Economic Development Authority, Kennickell Printing Project, RB, AMT (C) (D) (E) 1.300%, 09/01/11 2,015 2,015 ---------- 64,270 ---------- IDAHO (0.3%) Idaho State, Housing & Finance Association, Ser PA-115, RB (C) (D) 1.270%, 01/01/27 3,251 3,251 ---------- ILLINOIS (10.2%) Bloomington, Normal Airport Authority, GO (C) (D) 1.250%, 01/01/12 1,000 1,000 Chicago, Airport Special Facilities, Centerpoint O'Hare Project, RB, AMT (C) (D) (E) 1.250%, 09/01/32 2,800 2,800 Chicago, Merlots Project, Ser WWW, GO 1.320%, 01/01/22 11,000 11,000 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ ILLINOIS -- CONTINUED Chicago, Water Authority, Merlots Project, Ser A, GO 1.650%, 11/01/30 $ 14,985 $ 14,985 Illinois State, Development Finance Authority, Lyric Opera Chicago Project, RB (C) (D) (E) 1.150%, 12/01/28 10,000 10,000 Illinois State, Educational Facilities Authority, Chicago Childrens Museum Project, RB (C) (D) (E) 1.200%, 02/01/28 1,600 1,600 Illinois State, Educational Facilities Authority, Museum of Science & Industry Project, RB (C) (D) (E) 1.150%, 11/01/15 4,900 4,900 Illinois State, Educational Facilities Authority, University of Chicago Project, Ser B-1, RB (C) 2.700%, 07/01/03 20,900 21,015 Illinois State, Health Facilities Authority, Advocate Health Care Project, Ser B, RB (C) (D) 1.250%, 08/15/22 2,200 2,200 Illinois State, Health Facilities Authority, Proctor Hospital Project, RB (C) (D) (E) 1.200%, 01/01/12 4,500 4,500 12 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ ILLINOIS -- CONTINUED Illinois State, Housing Development Authority, Illinois Center Apartments Project, RB (C) (D) 1.110%, 01/01/08 $ 15,300 $ 15,300 Illinois State, Industrial Development Finance Authority, Derby Project, RB, AMT (C) (D) (E) 1.400%, 10/01/07 300 300 Illinois State, Regional Transportation Authority, Ser SG-82, RB, MBIA (C) (D) 1.220%, 06/01/25 17,500 17,500 Lockport, Industrial Development Authority, Panduit Project, RB, AMT (C) (D) (E) 1.250%, 04/01/25 2,000 2,000 Macon County, Millikin University Project, RB, AMBAC (C) (D) 1.150%, 10/01/28 5,850 5,850 Savanna, Industrial Development Authority, Metform Project, Ser A, RB, AMT (C) (D) (E) 1.250%, 05/01/14 500 500 Savanna, Industrial Development Authority, Metform Project, Ser B, RB, AMT (C) (D) (E) 1.250%, 06/01/09 1,400 1,400 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- ILLINOIS -- CONTINUED Wheeling, Industrial Development Authority, Circuit Service Project, RB, AMT (C) (D) (E) 1.400%, 04/01/18 $ 2,200 $ 2,200 ---------- 119,050 ---------- INDIANA (3.4%) Elkhart County, Industrial Economic Development Authority, Holly Park Project, RB, AMT (C) (D) (E) 1.400%, 02/01/10 1,800 1,800 Fort Wayne, Industrial Economic Development Authority, Technical Project, RB, AMT (C) (D) (E) 1.250%, 07/01/09 1,000 1,000 Indiana State, Development Finance Authority, Culver Educational Project, RB (C) (D) (E) 1.150%, 01/01/32 12,700 12,700 Indiana State, Development Finance Authority, Historical Society Project, RB (C) (D) (E) 1.200%, 08/01/31 1,200 1,200 Indiana State, Educational Facilities Authority, Wesleyan Project, Ser B, RB (C) (D) (E) 1.300%, 06/01/28 2,500 2,500 Indiana State, Health Facilities Financing Authority, Clarian Health Partners Project, Ser B, RB (C) (D) 1.200%, 02/15/26 2,000 2,000 13 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ INDIANA -- CONTINUED Jasper, Industrial Economic Development Authority, Wabash Valley Produce Project, RB, AMT (C) (D) (E) 1.400%, 06/01/05 $ 1,200 $ 1,200 La Porte County, Industrial Economic Development Authority, Pedcor Investments-Woodland Project, RB, AMT (C) (D) (E) 1.310%, 10/01/29 2,000 2,000 Marshall County, Industrial Economic Development Authority, Culver Educational Foundation Project, RB (C) (D) (E) 1.200%, 01/01/35 8,300 8,300 Warren Township, Vision 2005, Merlots, Ser A52, RB, FGIC (C) (D) (E) 1.320%, 07/15/20 6,600 6,600 ---------- 39,300 ---------- IOWA (0.5%) Sac County, Industrial Development Authority, Evapco Project, RB, AMT (C) (D) (E) 1.300%, 07/01/16 3,060 3,060 West Des Moines, Commercial Development Authority, Greyhound Lines Project, RB (C) (D) (E) 1.200%, 12/01/14 2,500 2,500 ---------- 5,560 ---------- ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ KANSAS (0.9%) Sedgwick & Shawnee Counties, Ser PT 227, RB (C) (D) (E) 1.270%, 12/01/22 $ 9,880 $ 9,880 ---------- KENTUCKY (0.3%) Kentucky State, Development Districts Financing Authority, RB (C) (D) (E) 1.400%, 06/01/33 3,800 3,800 ---------- LOUISIANA (0.2%) Louisiana State, Public Facilities Authority, Pollution Control, Ciba-Geigy Project, RB (C) (D) (E) 1.150%, 12/01/04 2,400 2,400 ---------- MARYLAND (1.4%) Howard County, Economic Development Authority, Norbell School Project, RB (C) (D) (E) 1.200%, 02/01/28 5,000 5,000 Maryland State, Community Development Administration Authority, Ser 170, RB (C) (D) 1.220%, 04/01/18 5,225 5,225 Maryland State, Ser PA 816, GO (C) (D) 1.180%, 03/01/15 5,800 5,800 ---------- 16,025 ---------- 14 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ MASSACHUSETTS (3.2%) Massachusetts State, GO (C) (D) 1.500%, 12/26/02 $ 7,380 $ 7,380 1.120%, 03/01/10 20,000 20,000 Massachusetts State, Transportation Improvement Association, Route 3 North Project, Ser B, RB, AMBAC (C) (D) 1.100%, 06/15/33 10,000 10,000 ---------- 37,380 ---------- MICHIGAN (0.2%) Michigan State, Strategic Fund, Consolidated Industrial Project, RB, AMT (C) (D) (E) 1.400%, 01/01/19 2,000 2,000 Oakland County, Economic Development Authority, Moody Family Limited Project, RB, AMT (C) (D) (E) 1.400%, 09/01/12 700 700 ---------- 2,700 ---------- MISSOURI (2.0%) Carthage, Industrial Development Authority, Schrieber Project, RB, AMT (C) (D) (E) 1.250%, 11/01/10 3,100 3,100 Missouri State, Environmental Improvement & Energy Resource Authority, Utilicorp United Project, RB, AMT (C) (D) (E) 1.250%, 05/01/28 700 700 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ MISSOURI -- CONTINUED St. Louis, Industrial Development Authority, Multi-Family Housing Project, RB (C) (D) 1.410%, 09/01/41 $ 20,000 $ 20,000 ---------- 23,800 ---------- MONTANA (0.7%) Missoula County, Economic Development Authority, Dinny Stranahan Research Project, RB (C) (D) (E) 1.150%, 06/01/20 8,500 8,500 ---------- NEVADA (2.1%) Clark County, Airport Improvement Authority, Sub Lien Ser A-1, RB (C) (D) (E) 1.100%, 07/01/25 9,510 9,510 Clark County, Airport Improvement Authority, Sub-Lien Ser A-2, RB, AMT (C) (D) (E) 1.210%, 07/01/25 4,275 4,275 Nevada State, Ser 344, GO, FGIC (C) (D) 1.310%, 05/15/28 5,495 5,495 Nevada State, Ser SG-114, RB (C) (D) 1.220%, 03/01/27 5,000 5,000 ---------- 24,280 ---------- NEW HAMPSHIRE (0.2%) New Hampshire State, Housing Finance Authority, Ser PT-348, RB (C) (D) (E) 1.270%, 07/01/29 2,480 2,480 ---------- 15 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ NEW JERSEY (3.4%) New Jersey State, Housing & Maintaining Finance Agency, Ser PT-1882, RB, MBIA (C) (D) 1.140%, 04/01/26 $ 14,740 $ 14,740 New Jersey State, Ser PA-801, COP, FHLMC (C) (D) 1.150%, 09/15/14 7,300 7,300 New Jersey State, Transportation Authority, Ser PA-902, RB, MBIA (C) (D) 1.150%, 12/15/05 17,020 17,020 ---------- 39,060 ---------- NEW MEXICO (0.3%) Las Cruces, RB, MBIA 5.250%, 12/01/02 2,960 2,960 ---------- NEW YORK (4.4%) Babylon, Industrial Development Agency, Ogden Martin Project, RB, FSA (C) (D) 1.150%, 01/01/19 25,720 25,720 New York City, Municipal Water Financing Authority, Ser SGB-27, RB, FSA (C) (D) 1.210%, 06/15/24 9,000 9,000 New York State, Dormitory Authority, Ser PA-781, RB, FSA (C) (D) 1.150%, 05/15/17 6,655 6,655 New York State, Thruway Authority, RB, FSA (C) (D) 1.500%, 12/26/02 7,315 7,315 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ NEW YORK -- CONTINUED Southeast New York, Industrial Development Agency, Unilock New York Project, RB, AMT (C) (D) (E) 1.250%, 12/01/12 $ 2,200 $ 2,200 ---------- 50,890 ---------- NORTH CAROLINA (4.9%) Charlotte, Airport Authority, Ser A, RB, MBIA, AMT (C) (D) 1.200%, 07/01/17 4,000 4,000 Cleveland County, Family YMCA, RB (C) (D) (E) 1.200%, 08/01/18 2,600 2,600 Forsyth County, Communications System Project, COP (C) (D) 1.200%, 10/01/12 7,300 7,300 Guilford County, Industrial & Recreational Facilities Authority, YMCA Project, RB (C) (D) (E) 1.200%, 02/01/23 5,000 5,000 Mecklenburg County, Public Improvements, Ser C, GO (C) (D) 1.150%, 02/01/14 5,000 5,000 Mecklenburg County, Ser C, GO (C) (D) 1.270%, 02/01/18 8,850 8,850 North Carolina State, Educational Facilities Finance Agency, Guilford College Project, RB, MBIA (C) (D) 1.250%, 05/01/24 2,200 2,200 16 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ NORTH CAROLINA -- CONTINUED North Carolina State, Educational Facilities Finance Agency, Wake Forest University Project, RB (C) (D) 1.100%, 01/01/18 $ 13,675 $ 13,675 North Carolina State, Medical Care Community Hospital, Lutheran Services for the Aging Project, RB (C) (D) (E) 1.350%, 03/01/28 8,135 8,135 ---------- 56,760 ---------- OHIO (6.4%) Cincinnati, Student Loan Funding Authority, Ser A-2, RB, AMT (C) (D) 1.250%, 08/01/10 29,300 29,300 Ohio State, Air Quality Development Authority, JMG Limited Partnership, Ser A, RB, AMT (C) (D) (E) 1.210%, 04/01/28 3,000 3,000 Ohio State, Higher Educational Facilities Commission, Pooled Financing Project, RB (C) (D) (E) 1.400%, 09/01/18 4,225 4,225 Ohio State, Housing Finance Authority, RB (C) (D) 1.260%, 03/01/07 9,320 9,320 Rickenbacker, Port Authority, YMCA of Central Ohio Project, RB (C) (D) (E) 1.150%, 05/01/22 10,500 10,500 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ OHIO -- CONTINUED Toledo, City Services, Special Assessment (C) (D) (E) 1.200%, 12/01/04 $ 9,700 $ 9,700 Warren County, Health Care Improvement, Otterbein Project, Ser A, RB (C) (D) (E) 1.230%, 07/01/21 8,550 8,550 ---------- 74,595 ---------- PENNSYLVANIA (3.2%) Berks County, Industrial Development Authority, Kutztown University Foundation Project, RB (C) (D) 1.300%, 01/01/27 13,310 13,310 Cambria County, Industrial Development Authority, Cambria Cogeneration Project, Ser A-1, RB, AMT (C) (D) (E) 1.250%, 12/01/28 7,125 7,125 Delaware River Port Authority, RB, FSA (C) (D) 1.150%, 01/01/18 7,000 7,000 Philadelphia, Industrial Development Authority, Chemical Heritage Foundation Project, RB (C) (D) (E) 1.300%, 07/01/27 9,600 9,600 ---------- 37,035 ---------- 17 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ SOUTH CAROLINA (5.5%) Newberry County, Hospital Authority, Newberry County Memorial Hospital Project, RB (C) (D) (E) 1.300%, 12/01/29 $ 10,000 $ 10,000 South Carolina State, Educational Facilities Authority, Newberry College Project, RB (C) (D) (E) 1.200%, 08/01/22 4,000 4,000 South Carolina State, Housing Finance & Development Authority, Ser PT 1272, RB, FHLMC (C) (D) 1.360%, 12/15/30 10,000 10,000 South Carolina State, Jobs Economic Development Authority, Anderson Area YMCA Project, RB (C) (D) (E) 1.200%, 11/01/24 7,100 7,100 South Carolina State, Jobs Economic Development Authority, Carolina Village Project, RB (C) (D) (E) 1.200%, 02/01/22 4,905 4,905 South Carolina State, Jobs Economic Development Authority, Developmental Foundation Project, RB (C) (D) (E) 1.200%, 12/01/10 6,000 6,000 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ SOUTH CAROLINA -- CONTINUED South Carolina State, Jobs Economic Development Authority, Diversified Coating Project, RB (C) (D) (E) 1.300%, 04/01/17 $ 2,000 $ 2,000 South Carolina State, Jobs Economic Development Authority, Sargent Metal Fabricators Project, RB (C) (D) 1.300%, 11/01/22 2,555 2,555 University of South Carolina, BAN 3.000%, 07/24/03 13,800 13,936 University of South Carolina, Development Foundation, RB (C) (D) (E) 1.300%, 12/01/10 4,000 4,000 ---------- 64,496 ---------- TENNESSEE (1.1%) Covington, Industrial Development Board, Charms Project, RB, AMT (C) (D) (E) 1.250%, 06/01/27 3,000 3,000 Metropolitan Government Nashville & Davidson County, Eagle Trust, GO (C) (D) (E) 1.250%, 11/15/18 10,000 10,000 ---------- 13,000 ---------- 18 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ TEXAS (8.7%) Coastal Bend, Health Facilities Development Authority, Incarnate World Health Systems Project, Ser B, RB, AMBAC (C) (D) 1.230%, 08/15/28 $ 17,400 $ 17,400 Houston, Airport System, Ser SG 149, RB, FSA (C) (D) 1.240%, 07/01/28 17,500 17,500 Houston, Higher Education Finance Authority, Rice University, Ser SG 139, RB (C) (D) 1.220%, 11/15/29 3,100 3,100 Houston, Water & Sewer System Authority, Ser SG 78, RB (C) (D) 1.220%, 12/01/25 8,835 8,835 Pearland, Independent School District, Ser SG 106, GO (C) (D) 1.220%, 02/15/22 6,245 6,245 South Texas, Higher Education Authority, RB, MBIA, AMT (C) (D) 1.200%, 12/01/29 14,200 14,200 Texas State, Eagle Trust, Ser 991301, GO (C) (D) 1.250%, 06/01/25 9,900 9,900 Texas State, Lower Colorado River Authority, Ser ZZZ, RB (C) (D) 2.600%, 10/01/28 3,500 3,500 Texas State, TRAN 2.750%, 08/29/03 20,000 20,198 ---------- 100,878 ---------- ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA (4.3%) Ashland, Industrial Development Authority, Health & Community Services Facilities Authority, YMCA of Greater Richmond Project, Ser A, RB (C) (D) (E) 1.300%, 11/01/20 $ 1,085 $ 1,085 Clarke County, Industrial Development Authority, Powhatan School District Project, RB (C) (D) (E) 1.200%, 09/01/22 1,700 1,700 Danville-Pittsylvania, Industrial Authority, Institute of Advanced Research Project, RB (C) (D) (E) 1.200%, 08/01/12 2,000 2,000 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser A, RB (C) (D) 1.190%, 10/01/25 3,500 3,500 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser B, RB (C) (D) 1.190%, 10/01/25 1,900 1,900 Fairfax County, Industrial Development Authority, Inova Services Project, Ser A, RB (C) (D) 1.190%, 01/15/22 2,000 2,000 Front Royal & Warren County, Industrial Development Authority, Pen Tab Industries Project, RB, AMT (C) (D) (E) 1.250%, 04/01/15 2,300 2,300 19 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 TAX-EXEMPT MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Greenville County, Industrial Development Authority, Blue Ridge School Project, RB (C) (D) 1.200%, 06/01/26 $ 1,140 $ 1,140 Hanover County, Industrial Development Authority, Covenant Woods Project, RB (C) (D) (E) 1.200%, 07/01/29 1,865 1,865 Norfolk, Eagle Trust, Ser 944601, GO (C) (D) 1.250%, 06/01/05 9,900 9,900 Suffolk, Industrial Development Authority, Lake Prince Center Project, RB (C) (D) (E) 1.300%, 10/01/05 4,000 4,000 Virginia State, Biotechnology Research Park Authority, RB (C) (D) (E) 1.300%, 04/01/27 12,000 12,000 Virginia State, Public School Equipment Authority, RB 5.000%, 04/01/03 6,000 6,056 ---------- 49,446 ---------- WASHINGTON (2.2%) King County, Water & Sewer Authority, RB, FSA (C) (D) 1.220%, 01/01/10 7,000 7,000 Seattle, Ser 348, GO (C) (D) 1.310%, 12/15/28 4,495 4,495 Washington State, Public Power Supply System, Nuclear Power Project No.1, Ser 1A-1, RB (C) (D) (E) 1.150%, 07/01/17 4,140 4,140 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ WASHINGTON -- CONTINUED Washington State, Public Power Supply System, Nuclear Power Project No.1, Ser C, RB (C) (D) 7.750%, 07/01/03 $ 4,900 $ 5,070 Washington State, Public Power Supply System, Nuclear Power Project No.2, Ser 2A-1, RB, MBIA (C) (D) 1.100%, 07/01/12 4,500 4,500 ---------- 25,205 ---------- WISCONSIN (1.2%) Appleton, Industrial Development Authority, Pro Label Project, RB, AMT (C) (D) (E) 1.500%, 11/01/12 585 585 Germantown, Industrial Development Authority, Speaker Project, RB, AMT (C) (D) (E) 1.500%, 08/01/11 685 685 Holland, Industrial Development Authority, White Clover Dairy Project, RB, AMT (C) (D) (E) 1.400%, 06/01/13 1,215 1,215 Oconomowoc, Industrial Development Authority, Quest Technologies Project, RB, AMT (C) (D) (E) 1.400%, 05/01/18 1,380 1,380 Tax-Exempt Grantor Trust, IBM, Ser 1999-A, RB (C) (D) 1.360%, 03/14/06 360 360 20 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ WISCONSIN -- CONTINUED Wisconsin State, Health & Educational Facilities Authority, Felician Services Project, Ser A, AMBAC (C) (D) 1.190%, 01/01/20 $ 10,300 $ 10,300 ---------- 14,525 ---------- Total Municipal Bonds (Cost $1,099,521) 1,099,521 ---------- CASH EQUIVALENTS (1.1%) Financial Square Tax Free Portfolio 2,355,659 2,356 SEI Institutional Tax Free Fund 11,000,000 11,000 ---------- Total Cash Equivalents (Cost $13,356) 13,356 ---------- Total Investments (95.7%) (Cost $1,112,877) 1,112,877 ---------- OTHER ASSETS AND LIABILITIES (4.3%) Investment Advisory Fee Payable (451) Administration Fee Payable (68) Distribution Fee Payable - Investor Class (25) Custodian Fee Payable (4) Other Assets and Liabilities 50,157 ---------- Total Other Assets and Liabilities, Net 49,609 ---------- ------------------------------------------------------------ VALUE (000) ------------------------------------------------------------ NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 918,310,045 outstanding shares of beneficial interest $ 918,311 Portfolio Shares of Investor Class (unlimited authorization -- no par value) based on 244,053,783 outstanding shares of beneficial interest 244,054 Accumulated net realized gain on investments 121 ---------- Total Net Assets (100.0%) $1,162,486 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 31. 21 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 U.S. GOVERNMENT SECURITIES MONEY MARKET FUND ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ U.S. GOVERNMENT AGENCY OBLIGATIONS (68.5%) FFCB (F) 1.268%, 06/10/03 $ 60,000 $ 60,000 FFCB Discount Note (G) 2.218%, 02/14/03 15,000 14,932 FHLB 1.590%, 12/09/03 25,000 24,986 FHLB, Ser 5803 (C) 1.348%, 01/28/03 35,000 35,000 FHLB, Ser 8E03 1.880%, 11/05/03 30,000 30,000 FHLB, Ser 9403 (C) 1.348%, 02/05/03 50,000 50,000 FHLB, Ser B903 1.800%, 11/28/03 15,000 15,000 FHLB, Ser EM03 (C) 1.303%, 03/14/03 40,000 40,000 FHLB, Ser J803 (H) 1.650%, 12/24/03 30,000 30,000 FHLB, Ser Q803 2.250%, 02/07/03 14,500 14,500 FHLMC Discount Note (G) 2.411%, 12/11/02 15,000 14,990 2.224%, 12/13/02 15,000 14,989 1.905%, 01/02/03 10,000 9,983 2.161%, 01/17/03 15,000 14,959 2.329%, 01/30/03 25,000 24,905 2.308%, 03/27/03 10,000 9,927 2.428%, 04/24/03 10,000 9,905 1.874%, 07/17/03 20,000 19,767 FNMA 2.250%, 02/07/03 20,000 20,000 FNMA (C) 1.320%, 12/06/02 25,000 25,000 1.368%, 12/12/02 75,000 75,000 1.348%, 01/10/03 50,000 50,000 ------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ U.S. GOVERNMENT AGENCY OBLIGATIONS -- CONTINUED FNMA Discount Note (G) 1.692%, 12/18/02 $ 35,000 $ 34,972 1.957%, 01/10/03 20,000 19,958 2.793%, 03/07/03 15,000 14,891 2.447%, 04/04/03 15,000 14,877 2.352%, 05/02/03 35,000 34,658 2.080%, 05/30/03 10,000 9,896 SLMA Discount Note (G) 2.328%, 01/27/03 25,000 24,910 SLMA, MTN (C) 1.328%, 02/18/03 25,000 24,999 1.328%, 03/07/03 25,000 24,999 ---------- Total U.S. Government Agency Obligations (Cost $808,003) 808,003 ---------- CASH EQUIVALENTS (8.4%) Dreyfus U.S. Government Money Market Fund 50,000,000 50,000 Financial Square Government Portfolio 50,000,000 50,000 ---------- Total Cash Equivalents (Cost $100,000) 100,000 ---------- REPURCHASE AGREEMENTS (25.3%) Bear Stearns 1.365% dated 11/29/02, matures 12/02/02, repurchase price $35,240,915 (collateralized by U.S Government obligations: total market value $35,944,934) (B) $ 35,237 35,237 22 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS -- CONTINUED Lehman Brothers 1.265% dated 11/29/02, matures 12/02/02, repurchase price $18,636,856 (collateralized by U.S Government obligation: total market value $19,005,895) (B) $ 18,635 $ 18,635 Merrill Lynch 1.295% dated 11/29/02, matures 12/02/02, repurchase price $31,855,525 (collateralized by U.S. Government obligations: total market value $32,391,734) (B) 31,752 31,752 Paribas 1.335% dated 11/29/02, matures 12/02/02, repurchase price $83,217,643 (collateralized by U.S. Government obligations: total market value $84,873,227) (B) 83,208 83,208 UBS Warburg 1.315% dated 11/29/02, matures 12/02/02, repurchase price $128,087,351 (collateralized by U.S. Government obligations: total market value $130,635,751) (B) 128,073 128,073 ---------- Total Repurchase Agreements (Cost $296,905) 296,905 ---------- Total Investments (102.2%) (Cost $1,204,908) 1,204,908 ---------- ------------------------------------------------------------ VALUE (000) ------------------------------------------------------------ OTHER ASSETS AND LIABILITIES (-2.2%) Investment Advisory Fee Payable $ (541) Administration Fee Payable (66) Distribution Fee Payable - Investor Class (29) Custodian Fee Payable (4) Other Assets and Liabilities (25,409) ---------- Total Other Assets and Liabilities, Net (26,049) ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 929,625,266 outstanding shares of beneficial interest 929,602 Portfolio Shares of Investor Class (unlimited authorization -- no par value) based on 249,249,541 outstanding shares of beneficial interest 249,272 Accumulated net realized loss on investments (15) ---------- Total Net Assets (100.0%) $1,178,859 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 31. 23 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 U.S. TREASURY MONEY MARKET FUND ------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ U.S. TREASURY OBLIGATIONS (16.9%) U.S. Treasury Notes 5.500%, 02/28/03 $ 10,000 $ 10,075 4.625%, 02/28/03 10,000 10,056 4.250%, 03/31/03 20,000 20,123 4.250%, 11/15/03 50,000 51,299 3.000%, 11/30/03 85,000 86,241 ---------- Total U.S. Treasury Obligations (Cost $177,794) 177,794 ---------- CASH EQUIVALENTS (8.6%) Dreyfus Treasury Prime Cash Management 45,000,000 45,000 Federated U.S. Treasury Cash Reserves Fund 45,000,000 45,000 ---------- Total Cash Equivalents (Cost $90,000) 90,000 ---------- REPURCHASE AGREEMENTS (74.4%) ABN Amro 1.255% dated 11/29/02, matures 12/02/02, repurchase price $196,015,494 (collateralized by U.S. Treasury obligations: total market value $199,915,220) (B) $195,995 195,995 Bear Stearns 1.255% dated 11/29/02, matures 12/02/02, repurchase price $49,650,426 (collateralized by U.S. Treasury obligations: total market value $53,696,151) (B) 49,647 49,647 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS -- CONTINUED Deutsche Bank 1.295% dated 11/29/02, matures 12/02/02, repurchase price $48,879,224 (collateralized by U.S. Treasury obligation: total market value $49,851,546) (B) $ 48,872 $ 48,872 Dresdner 1.255% dated 11/29/02, matures 12/02/02, repurchase price $49,660,106 (collateralized by U.S. Treasury obligations: total market value $50,648,636) (B) 49,655 49,655 Greenwich 1.255% dated 11/29/02, matures 12/02/02, repurchase price $49,008,350 (collateralized by U.S. Treasury obligations: total market value $49,987,043) (B) 49,003 49,003 JP Morgan Chase 1.255% dated 11/29/02, matures 12/02/02, repurchase price $47,556,652 (collateralized by U.S. Treasury obligations: total market value $48,505,283) (B) 47,552 47,552 Lehman Brothers 1.255% dated 11/29/02, matures 12/02/02, repurchase price $48,536,340 (collateralized by U.S. Treasury obligation: total market value $49,502,011) (B) 48,531 48,531 24 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ REPURCHASE AGREEMENTS -- CONTINUED Paribas 1.285% dated 11/29/02, matures 12/02/02, repurchase price $47,852,897 (collateralized by U.S. Treasury obligation: total market value $48,804,791) (B) $ 47,848 $ 47,848 Salomon Smith Barney 1.715% dated 11/29/02, matures 12/02/02, repurchase price $49,404,660 (collateralized by U.S. Treasury obligations: total market value $50,392,753) (B) 49,399 49,399 UBS Warburg 1.295% dated 11/29/02, matures 12/02/02, repurchase price $196,619,929 (collateralized by U.S. Treasury obligations: total market value $200,533,203) (B) 196,599 196,599 ---------- Total Repurchase Agreements (Cost $783,101) 783,101 ---------- Total Investments (99.9%) (Cost $1,050,895) 1,050,895 ---------- ------------------------------------------------------------ VALUE (000) ------------------------------------------------------------ OTHER ASSETS AND LIABILITIES (0.1%) Investment Advisory Fee Payable $ (443) Administration Fee Payable (54) Custodian Fee Payable (3) Other Assets and Liabilities 1,156 ---------- Total Other Assets and Liabilities, Net 656 ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 1,051,295,399 outstanding shares of beneficial interest 1,051,296 Distributions in excess of net investment income (243) Accumulated net realized gain on investments 498 ---------- Total Net Assets (100.0%) $1,051,551 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 31. 25 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 VIRGINIA TAX-FREE MONEY MARKET FUND ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ MUNICIPAL BONDS (98.3%) VIRGINIA (94.0%) Albemarle County, Industrial Development Authority, Eldercare Gardens Project, RB (C) (D) (E) 1.150%, 12/01/05 $ 2,445 $ 2,445 Albemarle County, Industrial Development Authority, University of Virginia Health Services Project, RB (C) (D) (E) 1.300%, 10/01/22 6,520 6,520 Alexandria, Industrial Development Authority, Alexandria County Day School Project, RB (C) (D) (E) 1.350%, 06/01/25 4,500 4,500 Alexandria, Industrial Development Authority, American Red Cross Project, RB (C) (D) (E) 1.350%, 01/01/09 3,320 3,320 Alexandria, Industrial Development Authority, Association for Supervision & Currency Project, RB (C) (D) (E) 1.300%, 07/01/23 1,555 1,555 Alexandria, Industrial Development Authority, Pooled Loan Program, Sub-Ser A, RB (C) (D) (E) 1.150%, 07/01/26 1,220 1,220 Alexandria, Redevelopment & Housing Authority, Multi- Family Housing Project, Ser PT 1251, RB (C) (D) 1.360%, 12/01/29 3,000 3,000 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Arlington County, Ballston Public Parking Project, RB (C) (D) (E) 1.200%, 08/01/17 $ 7,200 $ 7,200 Ashland, Industrial Development Authority, Health & Community Services Facilities Authority, YMCA Greater Richmond Project, Ser A, RB (C) (D) (E) 1.300%, 11/01/20 9,060 9,060 Ashland, Industrial Development Authority, Interflex Group Project, RB, AMT (C) (D) (E) 1.450%, 07/01/19 5,900 5,900 Chesapeake Bay, Bridge & Tunnel Community District Authority, General Resolution Project, RB, MBIA (C) (D) 1.250%, 07/01/25 6,755 6,755 Clark County, Industrial Development Authority, Winchester Medical Center Project, RB, FSA (C) (D) 1.350%, 01/01/30 10,000 10,000 Commonwealth of Virginia, Ser 1994, GO (C) (D) 1.250%, 06/01/21 5,000 5,000 Culpeper, Industrial Development Authority, Residential Care Facility, Virginia Baptist Homes, RB (C) (D) (E) 1.300%, 08/01/30 9,990 9,990 Danville, Industrial Development Authority, Institute of Advanced Research Project, RB (C) (D) (E) 1.200%, 08/01/12 4,000 4,000 26 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Fairfax County, Economic Development Authority, Cable Access Recovery, Ser A, RB (C) (D) (E) 1.400%, 05/01/25 $ 1,385 $ 1,385 Fairfax County, Economic Development Authority, Flint Hill School Project, RB (C) (D) (E) 1.350%, 09/01/21 4,875 4,875 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser A, RB (C) (D) 1.190%, 10/01/25 1,525 1,525 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser B, RB (C) (D) 1.190%, 10/01/25 4,200 4,200 Fairfax County, Industrial Development Authority, Innovations Health Systems, RB (C) (D) 1.190%, 01/01/30 11,800 11,800 Fairfax County, Ser 392, COP (C) (D) 1.210%, 04/15/32 14,465 14,465 Fairfax County, Water Authority, Municipal Trade Receipts Project, RB (C) (D) 1.210%, 04/01/30 7,850 7,850 Greenville County, Industrial Development Authority, Blue Ridge School Project, RB (C) (D) (E) 1.200%, 06/01/26 5,500 5,500 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Hampton, Public Improvements, Ser PA 876, RB (C) (D) 1.220%, 01/15/13 $ 6,500 $ 6,500 Hampton, Redevelopment & Housing Authority, Multi- Family Housing, Avalon Pointe Project, RB, AMT, FNMA (C) (D) 1.150%, 06/15/26 4,537 4,537 Hampton, Redevelopment & Housing Authority, Multi- Family Housing, Avalon at Hampton Inn Project, Ser A, RB (C) (D) (E) 1.100%, 06/15/26 2,750 2,750 Hanover County, Industrial Development Authority, Covenant Woods Project, RB (C) (D) (E) 1.200%, 07/01/29 15,370 15,370 Henrico County, Industrial Development Authority, Health Facilities, Hermitage Project, RB (C) (D) (E) 1.150%, 08/01/23 6,800 6,800 Louisa County, Industrial Development Authority, Pooled Financing Project, RB (C) (D) (E) 1.150%, 01/01/20 2,020 2,020 Lynchburg, Industrial Development Authority, Aerofin Project, RB, AMT (C) (D) (E) 1.400%, 03/01/29 2,075 2,075 27 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 VIRGINIA TAX-FREE MONEY MARKET FUND--CONTINUED ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Lynchburg, Industrial Development Authority, Educational Facilities, Randolph Macon Project, RB (C) (D) (E) 1.300%, 09/01/23 $ 8,000 $ 8,000 Metropolitan Washington D.C., Airport Project, RB, FGIC (C) (D) (E) 1.300%, 04/01/08 3,320 3,320 Newport News, Economic Development Authority, Jefferson Point Development Project, RB (C) (D) (E) 1.300%, 11/01/11 5,200 5,200 Newport News, Redevelopment & Housing Authority, Ser PT 1374, RB (C) (D) 1.220%, 07/01/25 8,890 8,890 Norfolk, Industrial Development Authority, Children's Hospital Facilities Project, RB (C) (D) (E) 1.150%, 06/01/20 15,300 15,300 Norfolk, Ser 944601, GO (C) (D) 1.250%, 06/01/05 12,500 12,500 Portsmouth, Industrial Development Authority, Fairwood Homes Project, Ser A, RB (C) (D) (E) 1.200%, 11/01/27 2,805 2,805 Prince Edward County, Industrial Development Authority, Eldercare of Virginia Project, RB (C) (D) (E) 1.150%, 08/01/05 2,050 2,050 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Prince George County, Industrial Development Authority, Metropolitan Span Project, RB, AMT (C) (D) (E) 1.400%, 09/01/19 $ 5,990 $ 5,990 Richmond, GO, FGIC (C) (D) 1.250%, 01/15/16 4,800 4,800 Richmond, Redevelopment & Multi-Family Housing Authority, Belmont Apartments Project, RB (C) (D) (E) 1.300%, 04/01/07 1,920 1,920 Roanoke, Industrial Development Authority, Hollins University Project, RB (C) (D) (E) 1.300%, 05/01/15 5,500 5,500 Roanoke, Redevelopment & Multi-Family Housing Authority, Stepping Stone Apartments Project, RB, AMT (C) (D) 1.300%, 04/01/40 2,000 2,000 Rockingham County, Industrial Development Authority, Sunnyside Presbyterian Project, RB (C) (D) (E) 1.350%, 12/31/26 7,000 7,000 Stafford County, GO 3.000%, 01/01/03 765 765 Staunton, Industrial Development Authority, Diebold-Staunton Project, RB (C) (D) (E) 1.400%, 04/01/17 530 530 28 -------------------------------------------------------------------------------- (UNAUDITED) ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Suffolk, Industrial Development Authority, Lake Prince Center Project, RB (C) (D) (E) 1.300%, 10/01/05 $ 6,000 $ 6,000 Virginia Beach, Development Authority, Multi-Family Housing, RB (C) (D) 1.360%, 04/01/42 7,255 7,255 Virginia Beach, Development Authority, Westminster- Canterbury Project, Ser B, RB (C) (D) (E) 1.300%, 11/01/06 500 500 Virginia Beach, Industrial Development Authority, Ocean Ranch Project, RB (C) (D) (E) 1.200%, 07/01/17 1,830 1,830 Virginia State, College Building Authority, Public Higher Education Financing Program, Ser A, RB 3.000%, 09/01/03 1,435 1,449 Virginia State, Commonwealth Transportation Board Authority, Ser SG 134, RB (C) (D) 1.220%, 05/15/22 2,600 2,600 Virginia State, Housing Development Authority, Ser PA 818R, RB (C) (D) 1.220%, 07/01/18 2,900 2,900 Virginia State, Port Authority, Ser SG 111, RB (C) (D) 1.270%, 07/01/24 14,705 14,705 ------------------------------------------------------------ FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Virginia State, Public Building Authority, Ser 131, RB, MBIA (C) (D) 1.240%, 08/01/19 $ 1,785 $ 1,785 Virginia State, Public Building Authority, Ser II-R-84, RB (C) (D) 1.250%, 08/01/03 2,750 2,750 Virginia State, Public School Authority, Improvements Project, Ser 11, RB (C) (D) 1.250%, 08/01/16 15,170 15,170 Virginia State, Public School Authority, Ser 431, RB (C) (D) 1.180%, 08/01/06 2,000 2,000 Virginia State, Residential Infrastructure Authority, Pooled Loan Project, Ser B, RB 2.000%, 11/01/03 970 973 Virginia State, Resource Authority, Clean Water Project, Ser PA 790, RB (C) (D) 1.220%, 10/01/16 4,300 4,300 Virginia State, Small Business Financing Authority, Clark County Industrial Development Project, RB, AMT (C) (D) (E) 1.350%, 07/01/25 1,825 1,825 Virginia State, Transportation Board Authority, Eagle Trust, Ser 994601, RB (C) (D) 1.250%, 05/15/19 10,560 10,560 29 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 (UNAUDITED) VIRGINIA TAX-FREE MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------ VIRGINIA -- CONTINUED Williamsburg, Industrial Development Authority, Colonial Williamsburg Museum Foundation Project, RB (C) (D) (E) 2.000%, 12/01/18 $ 600 $ 600 -------- 335,889 -------- PUERTO RICO (4.3%) Puerto Rico Commonwealth, Highway & Transportation Authority, RB, FSA (C) (D) 1.090%, 07/01/18 4,500 4,500 Puerto Rico Commonwealth, Highway & Transportation Authority, RB, MBIA (C) (D) 1.090%, 07/01/26 4,800 4,800 Puerto Rico, Electric Power Authority, RB (C) (D) 1.090%, 07/01/16 6,000 6,000 -------- 15,300 -------- Total Municipal Bonds (Cost $351,189) 351,189 -------- CASH EQUIVALENT (1.5%) Federated Virginia Municipal Cash Trust 5,522,253 5,522 -------- Total Cash Equivalent (Cost $5,522) 5,522 -------- Total Investments (99.8%) (Cost $356,711) 356,711 -------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (0.2%) Investment Advisory Fee Payable $ (113) Administration Fee Payable (19) Custodian Fee Payable (1) Distribution Fee Payable - Investor Class (13) Other Assets and Liabilities 742 -------- Total Other Assets and Liabilities, Net 596 -------- NET ASSETS: Portfolio Shares of Trust Shares (unlimited authorization -- no par value) based on 264,480,811 outstanding shares of beneficial interest 264,474 Portfolio Shares of Investor Shares (unlimited authorization -- no par value) based on 92,823,854 outstanding shares of beneficial interest 92,831 Accumulated net realized gain on investments 2 -------- Total Net Assets (100.0%) $357,307 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ======== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 31. 30 -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax BAN Bond Anticipation Note Cl Class COP Certificate of Participation FFCB Federal Farm Credit Bank FGIC Security insured by the Financial Guaranty Insurance Company FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Securities Assurance GO General Obligation MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note PLC Public Limited Company RB Revenue Bond Ser Series SLMA Student Loan Marketing Association TRAN Tax and Revenue Anticipation Note (A) Private Placement Security (B) Tri-Party Repurchase Agreement (C) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on November 30, 2002. (D) Optional tender and interest rate reset features give these securities a shorter effective maturity date. (E) Securities are held in connection with a letter of credit issued by a major bank. (F) Zero Coupon Security.The rate shown is the effective yield at the time of purchase. (G) Rate shown is the discount yield at date of purchase. (H) Security purchased on a when-issued basis. (1) Flex shares have a contingent deferred sales charge. For a description of a possible sales charge, see the prospectus. 31
STATEMENTS OF OPERATIONS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) TAX-EXEMPT U.S. GOVERNMENT VIRGINIA PRIME QUALITY MONEY SECURITIES U.S. TREASURY TAX-FREE MONEY MARKET MARKET MONEY MARKET MONEY MONEY MARKET FUND FUND FUND MARKET FUND FUND ----------- ----------- --------------- ------------- ------------ 06/01/02- 06/01/02- 06/01/02- 06/01/02- 06/01/02- 11/30/02 11/30/02 11/30/02 11/30/02 11/30/02 ----------- ----------- --------------- ------------- ------------ Interest Income ............................ $60,022 $8,972 $11,270 $7,813 $2,468 ------- ------ ------- ------ ------ Expenses: Investment Advisory Fees ................ 19,264 3,340 3,820 2,961 668 Administrator Fees ...................... 2,040 418 405 314 115 Distribution Fees -- Investor Shares .... 1,919 177 202 -- 197 Distribution Fees -- Flex Shares ........ 61 -- -- -- -- Transfer Agent Fees -- Trust Shares ..... 13 8 8 8 8 Transfer Agent Fees -- Investor Shares .. 15 7 8 -- 6 Transfer Agent Fees -- Flex Shares ...... 9 -- -- -- -- Transfer Agent Out of Pocket Expenses and Shareholder Servicing Fees ..... 160 33 32 23 8 Printing Expenses ....................... 87 18 17 11 5 Custody Fees ............................ 67 14 13 10 4 Professional Fees ....................... 106 22 21 16 6 Trustee Fees ............................ 28 5 5 4 2 Registration Fees ....................... 94 19 19 12 5 Insurance and Other Fees ................ 10 10 13 -- -- ------- ------ ------- ------ ------ Total Expenses .......................... 23,873 4,071 4,563 3,359 1,024 ------- ------ ------- ------ ------ Less: Investment Advisory Fees Waived ....................... (3,260) (601) (529) (410) -- Distribution Fees Waived -- Investor Shares ................... (181) (30) (31) -- (113) ------- ------ ------- ------ ------ Net Expenses ............................ 20,432 3,440 4,003 2,949 911 ------- ------ ------- ------ ------ Net Investment Income ...................... 39,590 5,532 7,267 4,864 1,557 ------- ------ ------- ------ ------ Net Realized Gain on Securities Sold ......................... 509 1 -- 178 -- ------- ------ ------- ------ ------ Net Increase in Net Assets from Operations ......................... $40,099 $5,533 $ 7,267 $5,042 $1,557 ======= ====== ======= ====== ======
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 32
STATEMENTS OF CHANGES IN NET ASSETS (000) ---------------------------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEAR ENDED MAY 31, 2002 U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND -------------------- ---------------------- ----------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 11/30/02 05/31/02 -------- --------- --------- --------- --------- ---------- Operations: Net Investment Income ................... $ 39,590 $ 126,325 $ 5,532 $ 16,166 $ 7,267 $ 22,794 Net Realized Gain on Investments 509 312 1 500 -- -- ----------- ----------- ---------- ---------- ---------- ---------- Net Increase in Net Assets from Operations .................. 40,099 126,637 5,533 16,666 7,267 22,794 ----------- ----------- ---------- ---------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares .......................... (28,395) (86,465) (4,573) (13,358) (5,947) (18,481) Investor Shares ....................... (11,902) (40,213) (959) (2,808) (1,320) (4,313) Flex Shares............................ (45) (87) -- -- -- -- Capital Gains: Trust Shares........................... -- -- -- (309) -- -- Investor Shares........................ -- -- -- (78) -- -- ----------- ----------- ---------- ---------- ---------- ---------- Total Distributions ..................... (40,342) (126,765) (5,532) (16,553) (7,267) (22,794) ----------- ----------- ---------- ---------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ........... 1,962,439 4,333,496 627,968 1,120,651 330,943 1,102,305 Reinvestment of Cash Distributions .... 2,277 6,234 -- -- 781 2,771 Cost of Shares Redeemed . ............. (2,110,749) (4,160,892) (617,384) (1,293,278) (399,869) (912,571) ----------- ----------- ---------- ---------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions .......... (146,033) 178,838 10,584 (172,627) (68,145) 192,505 ----------- ----------- ---------- ---------- ---------- ---------- Investor Shares: Proceeds from Shares Issued ........... 507,005 1,188,331 116,941 184,704 248,290 598,096 Reinvestment of Cash Distributions .... 11,890 40,129 959 2,883 1,311 4,249 Cost of Shares Redeemed . ............. (467,700) (1,268,613) (91,874) (226,454) (210,360) (550,459) ----------- ----------- ---------- ---------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions ....... 51,195 (40,153) 26,026 (38,867) 39,241 51,886 ----------- ----------- ---------- ---------- ---------- ---------- Flex Shares: Proceeds from Shares Issued ........... 17,927 17,534 -- -- -- -- Reinvestment of Cash Distributions .... 39 80 -- -- -- -- Cost of Shares Redeemed . ............. (13,265) (9,364) -- -- -- -- ----------- ----------- ---------- ---------- ---------- ---------- Increase in Net Assets From Flex Share Transactions ........... 4,701 8,250 -- -- -- -- ----------- ----------- ---------- ---------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions ........... (90,137) 146,935 36,610 (211,494) (28,904) 244,391 ----------- ----------- ---------- ---------- ---------- ---------- Total Increase (Decrease) in Net Assets........ ............. (90,380) 146,807 36,611 (211,381) (28,904) 244,391 ----------- ----------- ---------- ---------- ---------- ---------- Net Assets: Beginning of Period ....... ............. 5,806,538 5,659,731 1,125,875 1,337,256 1,207,763 963,372 ----------- ----------- ---------- ---------- ---------- ---------- End of Period ............. ............. $ 5,716,158 $ 5,806,538 $1,162,486 $1,125,875 $1,178,859 $1,207,763 =========== =========== ========== ========== ========== ==========
U.S. TREASURY VIRGINIA TAX-FREE MONEY MARKET FUND MONEY MARKET FUND ------------------ ------------------ 06/01/02-06/01/01- 06/01/02-06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 ------------------ ------------------ -------------------------- Operations: Net Investment Income ................... $ 4,864 $ 16,195 $ 1,557 $ 4,854 Net Realized Gain on Investments ........ 178 320 -- 82 ---------- --------- --------- --------- Net Increase in Net Assets from Operations .................. 5,042 16,515 1,557 4,936 ---------- --------- --------- --------- Distributions to Shareholders: Net Investment Income: Trust Shares .......................... (5,089) (16,214) (1,159) (3,635) Investor Shares ....................... -- -- (398) (1,219) Flex Shares............................ -- -- -- -- Capital Gains: Trust Shares........................... -- -- -- (36) Investor Shares........................ -- -- -- (17) ---------- --------- --------- --------- Total Distributions .................... (5,089) (16,214) (1,557) (4,907) ---------- --------- --------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ........... 686,322 1,525,826 208,457 415,687 Reinvestment of Cash Distributions .... 45 8 58 133 Cost of Shares Redeemed ............... (506,715) (1,387,957) (184,734) (401,345) ---------- --------- --------- --------- Increase (Decrease) in Net Assets From Trust Share Transactions .......... 179,652 137,877 23,781 14,475 ---------- --------- --------- --------- Investor Shares: Proceeds from Shares Issued ........... -- -- 48,594 136,756 Reinvestment of Cash Distributions .... -- -- 331 1,236 Cost of Shares Redeemed ............... -- -- (55,221) (131,866) ---------- --------- --------- --------- Increase (Decrease) in Net Assets From Investor Share Transactions ....... -- -- (6,296) 6,126 ---------- --------- --------- --------- Flex Shares: Proceeds from Shares Issued ........... -- -- -- -- Reinvestment of Cash Distributions .... -- -- -- -- Cost of Shares Redeemed . ............. -- -- -- -- ---------- --------- --------- --------- Increase in Net Assets From Flex Share Transactions ........... -- -- -- -- ---------- --------- --------- --------- Increase (Decrease) in Net Assets From Share Transactions ........... 179,652 137,877 17,485 20,601 ---------- --------- --------- --------- Total Increase (Decrease) in Net Assets...................... 179,605 138,178 17,485 20,630 ---------- --------- --------- --------- Net Assets: Beginning of Period ..................... 871,946 733,768 339,822 319,192 ---------- --------- --------- --------- End of Period ........................... $1,051,551 $ 871,946 $ 357,307 $ 339,822 ========== ========= ========= ========= (1) For Capital Share Transactions see footnote 7 in the notes to financial statements. Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 33
FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEARS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET NET ASSET NET ASSET VALUE, INVESTMENT DISTRIBUTIONS FROM VALUE, END BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD ------------------ ---------- --------------------- ---------- PRIME QUALITY MONEY MARKET FUND Trust Shares 2002* $1.00 $0.01 $(0.01) $1.00 2002 1.00 0.02 (0.02) 1.00 2001 1.00 0.06 (0.06) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.05 (0.05) 1.00 1998 1.00 0.05 (0.05) 1.00 Investor Shares 2002* $1.00 $0.01 $(0.01) $1.00 2002 1.00 0.02 (0.02) 1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.05 (0.05) 1.00 1998 1.00 0.05 (0.05) 1.00 Flex Shares 2002* $1.00 $0.00** $(0.00)** $1.00 2002 1.00 0.01 (0.01) 1.00 2001 1.00 0.05 (0.05) 1.00 2000 (A) 1.00 0.03 (0.03) 1.00 TAX-EXEMPT MONEY MARKET FUND Trust Shares 2002* $1.00 $0.00** $(0.00)** $1.00 2002 1.00 0.01 (0.01) 1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999 1.00 0.03 (0.03) 1.00 1998 1.00 0.03 (0.03) 1.00 Investor Shares 2002* $1.00 $0.00** $(0.00)** $1.00 2002 1.00 0.01 (0.01) 1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999 1.00 0.03 (0.03) 1.00 1998 1.00 0.03 (0.03) 1.00 + Returns are for the period indicated and have not been annualized. (The performance in the above table does not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares.) * For the six month period ended November 30, 2002. All ratios for the period have been annualized. ** Amount represents less than 0.01 per share. (A) Flex shares were offered beginning October 4, 1999. All ratios for the period have been annualized.
34
----------------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET INVESTMENT RATIO OF NET INVESTMENT EXPENSES TO INCOME TO NET ASSETS, EXPENSES TO INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS TOTAL END OF AVERAGE AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS RETURN+ PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) ------- ------------ ---------- ---------- ------------------- ------------------- PRIME QUALITY MONEY MARKET FUND Trust Shares 2002* 0.72% $3,761,004 0.63% 1.40% 0.74% 1.29% 2002 2.29 3,907,203 0.63 2.22 0.74 2.11 2001 5.75 3,728,371 0.63 5.57 0.75 5.45 2000 5.20 3,311,229 0.60 5.06 0.75 4.91 1999 4.83 3,903,232 0.60 4.69 0.77 4.52 1998 5.22 1,880,229 0.59 5.10 0.77 4.92 Investor Shares 2002* 0.62% $1,938,151 0.81% 1.21% 0.94% 1.08% 2002 2.11 1,887,033 0.81 2.09 0.94 1.96 2001 5.57 1,927,309 0.80 5.36 0.95 5.21 2000 5.02 1,312,653 0.77 4.94 0.95 4.76 1999 4.66 918,100 0.77 4.52 0.97 4.32 1998 5.04 411,821 0.76 4.93 0.98 4.71 Flex Shares 2002* 0.28% $ 17,003 1.49% 0.53% 1.60% 0.42% 2002 1.36 12,302 1.54 1.04 1.70 0.88 2001 4.75 4,051 1.53 4.54 1.92 4.15 2000 (A) 2.93 3,445 1.50 4.46 1.99 3.97 TAX-EXEMPT MONEY MARKET FUND Trust Shares 2002* 0.47% $ 918,411 0.54% 0.94% 0.64% 0.84% 2002 1.38 907,827 0.55 1.39 0.65 1.29 2001 3.47 1,080,362 0.54 3.40 0.65 3.29 2000 3.19 755,858 0.52 3.16 0.66 3.02 1999 2.81 641,640 0.52 2.75 0.66 2.61 1998 3.21 448,023 0.51 3.14 0.67 2.98 Investor Shares 2002* 0.41% $ 244,075 0.67% 0.81% 0.79% 0.69% 2002 1.26 218,048 0.67 1.25 0.80 1.12 2001 3.35 256,894 0.67 3.22 0.80 3.09 2000 3.07 125,500 0.64 3.01 0.82 2.83 1999 2.69 128,854 0.64 2.66 0.82 2.48 1998 3.09 134,538 0.62 3.04 0.83 2.83
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 35
FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEARS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET NET ASSET NET ASSET VALUE, INVESTMENT DISTRIBUTIONS FROM VALUE, END BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD ------------------- ---------- --------------------- ------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Trust Shares 2002* $1.00 $0.01 $(0.01) $1.00 2002 1.00 0.02 (0.02) 1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.04 (0.04) 1.00 1998 1.00 0.05 (0.05) 1.00 Investor Shares 2002* $1.00 $0.01 $(0.01) $1.00 2002 1.00 0.02 (0.02) 1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.04 (0.04) 1.00 1998 1.00 0.05 (0.05) 1.00 U.S. TREASURY MONEY MARKET FUND (A) Trust Shares 2002* $1.00 $0.01 $(0.01) $1.00 2002 1.00 0.02 (0.02) 1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999* 1.00 0.02 (0.02) 1.00 For the Year Ended November 30: 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 VIRGINIA TAX-FREE MONEY MARKET FUND (B) Trust Shares 2002* $1.00 $0.00** $(0.00)** $1.00 2002 1.00 0.01 (0.01) 1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999* 1.00 0.01 (0.01) 1.00 For the Year Ended November 30: 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 Investor Shares 2002* $1.00 $0.00** $(0.00)** $1.00 2002 1.00 0.01 (0.01) 1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999* 1.00 0.01 (0.01) 1.00 For the Year Ended November 30: 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 + Returns are for the period indicated and have not been annualized. (The performance in the above table does not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares.) * For the six month period ended November 30, 2002 or the period December 1, 1998 to May 31, 1999. All ratios for the period have been annualized. ** Amount represents less than 0.01 per share. (A) On May 24, 1999, the CrestFund U.S. Treasury Money Fund exchanged all of its assets and certain liabilities for shares of the U.S. Treasury Money Market Fund. The CrestFund U.S. Treasury Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (B) On May 24, 1999, the CrestFund Tax-Free Money Fund exchanged all of its assets and certain liabilities for shares of the Virginia Tax-Free Money Market Fund. The CrestFund Tax-Free Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights.
36
----------------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF NET INVESTMENT RATIO OF NET INVESTMENT EXPENSES TO INCOME TO NET ASSETS, EXPENSES TO INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS TOTAL END OF AVERAGE AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS RETURN+ PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) ------- ------------ ---------- ---------- ------------------- ------------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Trust Shares 2002* 0.64% $ 929,614 0.65% 1.27% 0.74% 1.18% 2002 2.25 997,759 0.66 2.17 0.75 2.08 2001 5.56 805,285 0.65 5.29 0.75 5.19 2000 4.86 468,568 0.63 4.80 0.74 4.69 1999 4.57 404,459 0.63 4.47 0.76 4.34 1998 5.04 377,490 0.62 4.92 0.78 4.76 Investor Shares 2002* 0.56% $ 249,245 0.80% 1.11% 0.92% 0.99% 2002 2.11 210,004 0.80 2.02 0.92 1.90 2001 5.41 158,087 0.79 5.14 0.93 5.00 2000 4.71 79,311 0.77 4.62 0.93 4.46 1999 4.41 61,472 0.77 4.32 0.98 4.11 1998 4.90 58,753 0.76 4.79 0.96 4.59 U.S. TREASURY MONEY MARKET FUND (A) Trust Shares 2002* 0.56% $1,051,551 0.65% 1.07% 0.74% 0.98% 2002 1.96 871,946 0.65 1.90 0.74 1.81 2001 5.36 733,768 0.66 5.23 0.76 5.13 2000 4.81 723,277 0.63 4.71 0.74 4.60 1999* 2.08 760,833 0.68 4.10 0.83 3.95 For the Year Ended November 30: 1998 4.89 699,923 0.66 4.77 0.81 4.62 1997 4.91 632,381 0.65 4.82 0.80 4.67 VIRGINIA TAX-FREE MONEY MARKET FUND (B) Trust Shares 2002* 0.50% $ 264,462 0.49% 0.98% 0.49% 0.98% 2002 1.44 240,681 0.50 1.45 0.50 1.45 2001 3.51 226,188 0.50 3.45 0.50 3.45 2000 3.23 245,243 0.51 3.19 0.51 3.19 1999* 1.27 270,431 0.67 2.51 0.82 2.36 For the Year Ended November 30: 1998 2.97 270,899 0.66 2.92 0.81 2.77 1997 3.06 226,837 0.66 3.02 0.81 2.87 Investor Shares 2002* 0.41% $ 92,845 0.67% 0.81% 0.90% 0.58% 2002 1.27 99,141 0.67 1.22 0.90 0.99 2001 3.35 93,004 0.66 3.28 0.91 3.03 2000 3.07 62,878 0.67 3.17 0.73 3.11 1999* 1.27 5,955 0.67 2.52 1.06 2.13 For the Year Ended November 30: 1998 2.96 8,851 0.67 2.92 1.07 2.52 1997 3.05 7,634 0.68 3.42 1.08 3.02
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 37 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 1. Organization: The STI Classic Funds (the "Trust") was organized as a Massachusetts business trust under a Declaration of Trust dated January 15, 1992. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with forty funds as of November 30, 2002: the Balanced Fund, the Capital Appreciation Fund, the Growth and Income Fund, the Information and Technology Fund, the International Equity Fund, the International Equity Index Fund, the Life Vision Aggressive Growth Fund, the Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the Mid-Cap Equity Fund, the Mid Cap Value Equity Fund, the Small Cap Growth Stock Fund, the Small Cap Value Equity Fund, the Tax Sensitive Growth Stock Fund, the Value Income Stock Fund, the Vantage Fund, (collectively the "Equity Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, the High Income Fund, the Investment Grade Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, the Strategic Income Fund, the U.S. Government Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality Money Market Fund, the Tax-Exempt Money Market Fund, the U.S. Government Securities Money Market Fund, the U.S. Treasury Money Market Fund, the Virginia Tax-Free Money Market Fund, (collectively the "Retail Money Market Funds" or the "Funds"), the Classic Institutional Short-Term Bond Fund, the Classic Institutional Super Short Income Plus Fund, the Classic Institutional U.S. Government Securities Super Short Income Plus Fund, the Classic Institutional Cash Management Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund, (collectively the "Institutional Funds"). The assets of each Fund are segregated, and a shareholder's interest is limited to the fund in which shares are held. Each Fund's prospectus provides a description of the Fund's investment objectives, policies and strategies. The financial statements presented herein are those of the Retail Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Institutional Funds are not presented herein, but are presented separately. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust: SECURITY VALUATION -- Investment securities held by the Funds are stated at amortized cost, which approximates market value. Under the amortized cost method, any discount or premium is amortized ratably to the next interest readjustment date, the date that the principal owned can be recovered through demand, or the maturity date of the security and is included in interest income. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of 38 -------------------------------------------------------------------------------- (UNAUDITED) purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized ratably to the next interest readjustment date, the date the principal owned can be recovered through demand, or the maturity date of the security and are included in interest income. REPURCHASE AGREEMENTS -- In connection with transactions involving repurchase agreements, a third party custodian bank takes possession of the underlying securities ("collateral"), the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated each business day, by dividing the total value of each Fund's assets, less liabilities, by the number of shares outstanding. OTHER -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distributor and transfer agent fees, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income of each of the Funds are declared on each business day and paid to shareholders on a monthly basis. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. USE OF ESTIMATES -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates. 3. Transactions with Affiliates: Certain officers of the Trust are also officers of SEI Investments Global Funds Services (formerly SEI Investments Mutual Fund Services, the "Administrator"), and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. The Trust has entered into an agreement with SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc. which is a direct non-bank subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase agreements for the Trust. For the period ended November 30, 2002, SunTrust Robinson Humphrey received fees for the following funds: FEES ---- Prime Quality Money Market Fund .................................... $ 23,025 U.S. Government Securities Money Market Fund ....................... 52,099 U.S. Treasury Money Market Fund .................................... 166,434 39 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 The Trust and the Distributor are parties to a Distribution Agreement dated November 21, 1995. The Distributor will receive no fees for its distribution services under this agreement for the Trust Shares of any fund. With respect to the Investor and Flex Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of Flex Shares) a Distribution and Service Plan, as outlined in the table in footnote 5 under the column titled "Maximum Flex Share Distribution and Service Fee". The Distributor has voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds expenses) in order to limit operating expenses. 4. Administration and Transfer Agency Servicing Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: 0.12% up to $1 billion, 0.09% on the next $4 billion, 0.07% on the next $3 billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated May 14, 1994 under which Federated Services Company provides transfer agency services to the Trust. The Trust and SunTrust Securities Inc. ("STS"), a wholly-owned subsidiary of SunTrust Bank, Inc., are parties to an agreement under which STS provides shareholder support and other account-related services. Shareholder service fees (including out of pocket expenses) paid to STS for the period ended November 30, 2002 were: FEES ---- Prime Quality Money Market Fund .................................... $79,888 Tax-Exempt Money Market Fund ...................................... 16,368 U.S. Government Securities Money Market Fund .............................................. 15,840 U.S. Treasury Money Market Fund .................................... 12,281 Virginia Tax-Free Money Market Fund ................................ 4,503 5. Investment Advisory and Custodian Agreements: The Trust and Trusco Capital Management, Inc. (the "Investment Adviser") have entered into an advisory agreement dated June 15, 1993, and last amended as of April 8, 2002. Under terms of the agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM MAXIMUM MAXIMUM INVESTOR FLEX SHARE ANNUAL SHARE DISTRIBUTION ADVISORY DISTRIBUTION AND SERVICE FEE FEE FEE ---------- ---------- ------------ Prime Quality Money Market Fund ......................... 0.65% 0.20% 0.75% Tax-Exempt Money Market Fund .... 0.55 0.15 -- U.S. Government Securities Money Market Fund ........... 0.65 0.17 -- U.S. Treasury Money Market Fund ......................... 0.65 -- -- Virginia Tax-Free Money Market Fund ......................... 0.40 0.40 -- The Investment Adviser has voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds expenses) in order to limit operating expenses. Fee waivers and expense reimburse-ments are voluntary and may be terminated at any time. SunTrust Bank acts as custodian for the Funds. The Custodian is paid on the basis of the net 40 -------------------------------------------------------------------------------- (UNAUDITED) assets and transaction fees of the Funds. The Custodian plays no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. 6. Federal Tax Information: FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a regulated investment company for Federal income tax purposes and distribute all of its taxable income and net capital gains. Accordingly, no provisions for Federal income taxes are required. As of May 31, 2002 the U.S. Government Securities Money Market Fund had capital loss carryovers of approximately $15,000 which will expire in 2009. Capital loss carryovers represent losses that can be carried forward to offset future realized capital gains. 41 NOTES TO FINANCIAL STATEMENTS (concluded) -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 7. Capital Share Transactions (000):
U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND ----------------------- --------------------- --------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/021 1/30/02 05/31/02 11/30/02 05/31/02 ----------------------- --------------------- --------------------- Shares Issued and Redeemed: Trust Shares: Shares Issued ................... 1,962,439 4,333,496 627,968 1,120,651 330,943 1,102,305 Shares Issued in Lieu of Cash Distributions ..... 2,277 6,234 -- -- 781 2,771 Shares Redeemed ................. (2,110,749) (4,160,894) (617,384) (1,293,278) (399,869) (912,571) --------- --------- ------- --------- ------- --------- Net Trust Share Transactions .... (146,033) 178,836 10,584 (172,627) (68,145) 192,505 --------- --------- ------- --------- ------- --------- Investor Shares: Shares Issued ................... 507,005 1,188,331 116,941 184,704 248,290 598,096 Shares Issued in Lieu of Cash Distributions . 11,890 40,129 959 2,883 1,311 4,249 Shares Redeemed ................. (467,700) (1,268,613) (91,874) (226,454) (210,360) (550,459) --------- --------- ------- --------- ------- --------- Net Investor Share Transactions . 51,195 (40,153) 26,026 (38,867) 39,241 51,886 --------- --------- ------- --------- ------- --------- Flex Shares: Shares Issued.................... 17,927 17,534 -- -- -- -- Shares Issued in Lieu of Cash Distributions........... 39 80 -- -- -- -- Shares Redeemed.................. (13,265) (9,364) -- -- -- -- --------- --------- ------- --------- ------- --------- Net Flex Share Transactions ..... 4,701 8,250 -- -- -- -- --------- --------- ------- --------- ------- --------- Net Change in Capital Shares .... (90,137) 146,933 36,610 (211,494) (28,904) 244,391 ========= ========= ======= ========= ======= =========
U.S. TREASURY VIRGINIA TAX-FREE MONEY MARKET FUND MONEY MARKET FUND ---------------------- ----------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 ---------------------- ----------------------- Shares Issued and Redeemed: Trust Shares: Shares Issued ................... 686,322 1,525,826 208,457 415,687 Shares Issued in Lieu of Cash Distributions ..... 45 8 58 133 Shares Redeemed ................. (506,715) (1,387,957) (184,734) (401,345) -------- --------- -------- ------- Net Trust Share Transactions .... 179,652 137,877 23,781 14,475 -------- --------- -------- ------- Investor Shares: Shares Issued ................... -- -- 48,594 136,756 Shares Issued in Lieu of Cash Distributions . -- -- 331 1,236 Shares Redeemed ................. -- -- (55,221) (131,866) -------- --------- -------- ------- Net Investor Share Transactions . -- -- (6,296) 6,126 -------- --------- -------- ------- Flex Shares: Shares Issued.................... -- -- -- -- Shares Issued in Lieu of Cash Distributions........... -- -- -- -- Shares Redeemed.................. -- -- -- -- -------- --------- -------- ------- Net Flex Share Transactions ..... -- -- -- -- -------- --------- -------- ------- Net Change in Capital Shares .... 179,652 137,877 17,485 20,601 ======== ========= ======== =======
8. Concentration of Credit Risk: The Prime Quality Money Market Fund invests primarily in high quality money market instruments rated in the highest short-term rating category by Standard & Poor's Ratings Group ("S&P") or Moody's Investors Services, Inc. (Moody's) or, if not rated, are determined by the Investment Adviser to be of comparable quality. The Tax-Exempt Money Market and Virginia Tax-Free Money Market Funds invest in high quality, U.S. dollar denominated municipal securities rated in one of the two highest short-term rating categories or, if not rated, are determined by the Investment Adviser to be of comparable quality. The U.S. Government Securities Money Market and U.S. Treasury Money Market Funds invest exclusively in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. 42 NOTES -------------------------------------------------------------------------------- NOTES -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES INVESTMENT ADVISER Trusco Capital Management, Inc. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by an affiliate of SunTrust Banks, Inc. DISTRIBUTOR SEI Investments Distribution Co. This information must be preceded or accompanied by a current prospectus for each Fund described. STI-SA-002-0300